Shriram Finance targets doubling gold loans’ share of loanbook to 5% in three years
Shriram Finance plans to lift gold loans from about 2.5% to 5% of its loanbook within three years, using its 3,200-plus branch network. Its gold-loan book stood at Rs 7,514 crore in June 2026, after growing 46% year-on-year.
What happened
Shriram Finance plans to double gold loans' share of its loanbook to 5% within three years through its 3,200-plus branch network. It also aims to raise MSME
Key facts
- Gold loans targeted to reach 5% of loanbook from about 2.5% in three years
- Gold loans outstanding: Rs 7,514 crore as of June 2026
- Overall loanbook: Rs 3.13 lakh crore as of June 2026
- Gold-loan portfolio grew 46% year-on-year and 13% quarter-on-quarter in Q1 FY27
- Over 3,200 branches
- 1.03 crore customers
- MSME loans: Rs 41,962 crore, up 8% year-on-year as of June
- MUFG capital boost: over Rs 39,000 crore
- Construction-equipment AUM: Rs 12,373 crore, down 25.17%
Why this matters
The push to make gold loans 5% of the loanbook strengthens the case for partnerships or capability investments in gold appraisal, secure storage, digital origination and collections.
What to watch
- Quarterly gold-loan book growth versus overall AUM growth and progress toward the 5% mix target.
- Gold-loan yield, net interest margin and operating cost per loan as branch-led volumes scale.
- Loan-to-value ratios, overdue trends, auction frequency, auction recovery rates and loss given default.
- Gold-price volatility, particularly a sustained decline that could pressure collateral coverage.
- Management disclosures on branch rollout, employee training, centralized vault capacity and digital gold-loan journeys.
- Competitive rate actions and growth trends at Muthoot Finance, Manappuram Finance, banks and other NBFCs.
- Any RBI guidance on gold-loan underwriting, collateral handling, auction procedures or concentration exposure.
- Expand gold-loan sourcing and appraisal capability across more branches, especially in semi-urban and rural markets.
- Use pre-approved offers for existing vehicle-finance and small-business borrowers to accelerate repeat borrowing.
- Increase marketing around instant disbursal, transparent auction practices and branch accessibility to compete with dedicated gold-finance lenders.
- Build centralized collateral valuation, fraud detection, storage and auction infrastructure as volumes rise.
- Seek to protect spreads through disciplined loan-to-value limits rather than pursuing share solely through lower rates.
- Cross-sell insurance, deposits and other secured products to gold-loan customers and use gold-loan visits to raise branch productivity.